ATA, IMCC Pleased by FMC Action to Clarify Detention and Demurrage Responsibilities

Motor carriers often face major detention and demurrage charges from ocean carriers when shipping containers are delayed either on the dock or after being taken off the port complex

The American Trucking Associations’ Intermodal Motor Carriers Conference said it was pleased the Federal Maritime Commission has issued new rules that will clarify and simplify the process by which shippers are billed for detention and demurrage charges.

“The Ocean Shipping Reform Act required the FMC to clarify who can be billed for detention and demurrage charges, and we are extremely pleased to see that motor carriers who do not contract with ocean carriers will no longer receive these bills,” said IMCC Executive Director Jonathan Eisen.

IMCC and ATA pressed Congress to include this clarification in the Ocean Shipping Reform Act when it passed in 2022. Motor carriers often face major detention and demurrage charges from ocean carriers when shipping containers are delayed either on the dock or after being taken off the port complex. This is the case even though trucking firms are not party to the contracts between the ocean lines and their shippers. During the supply chain disruptions of the pandemic, these charges resulted in major increases in costs for shippers that ultimately were passed onto American consumers.

“The new rule will require ocean carriers to work directly with their customers, increasing incentives for faster dispute resolutions and bringing greater efficiency to the supply chain,” Eisen said.
For more on how the OSRA will improve our supply chain and lift burdens from trucking companies, click here.

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